India, US to fast-track trade talks amid tarriff war

The Indian government says it will fast-track trade talks with the US despite fresh tariffs imposed by Washington.

India’s Commerce Ministry announced on Thursday April 3, 2025, that both nations will begin sector-specific discussions this month to finalize a trade deal.

This move follows the US government’s decision to impose a 27% import duty on Indian goods starting April 9.

“Discussions are ongoing to conclude a mutually beneficial, multi-sectoral trade agreement,” the Commerce Ministry said in a statement.

Minister of State for Finance, Pankaj Chaudhary, said India is assessing the tariff hike and its impact on the economy.

“For Trump, it’s America first, but for Modi, it’s India first,” he said at an event.

Opposition parties have criticized Prime Minister Narendra Modi over the new tariffs, calling for stronger action to protect India’s interests.

The trade agreement aims to expand market access, reduce tariffs, and improve supply chain integration between both countries.

A US trade delegation visited India last month to finalize key aspects of the proposed trade deal.

India and the US aim to double bilateral trade from $191 billion to $500 billion by 2030.

Although both sides plan to conclude the deal by September or October, complex negotiations could delay the process.

Under the trade pact, both nations will either reduce or eliminate tariffs on several goods and services.

The US wants lower duties on industrial goods, automobiles, wines, petrochemicals, dairy, and agricultural products.

India, however, seeks duty cuts for labour-intensive industries like textiles.

In 2024, India’s key exports to the US included pharmaceuticals ($8.1 billion), telecom equipment ($6.5 billion), and petroleum products ($4.1 billion).

The US imported crude oil ($4.5 billion), coal ($3.4 billion), and aircraft parts ($1.3 billion) from India.

In 2023-24, the US remained India’s largest trading partner with a total trade volume of $119.71 billion.

The Opposition has warned that the new US tariffs could damage India’s economy, affecting the auto, pharmaceutical, and agricultural sectors.

Congress leader Rahul Gandhi said the tariffs could devastate Indian industries and urged the government to act.

Samajwadi Party MP Rajiv Rai mocked Modi, saying India’s global credibility will not improve through one-sided friendships.

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